Navigation » List of Schools » Prince George Community College » Economics » Econ 1030 – Principles of Microeconomics » Summer 2021 » Test 6
Below are the questions for the exam with the choices of answers:
Question #1
A Jerome Powell
B Ben Bernanke
C Alan Greenspan
D Janet Yellen
Question #2
A a decrease in the federal funds rate and an increase in the money supply
B an increase in the federal funds rate and an increase in the money supply
C a decrease in the federal funds rate and a decrease in the money supply
D an increase in the federal funds rate and a decrease in the money supply
Question #3
A tax rates
B investment spending
C government spending
D the imports of the economy
Question #4
A selling government securities and lowering the discount rate
B buying government securities and lowering the discount rate
C selling government securities and raising the discount rate
D buying government securities and lowering the reserve ratio
Question #5
A a prime interest rate policy
B an expansionary monetary policy
C a restrictive monetary policy
D a discretionary fiscal policy
Question #6
A the Federal Reserve charges for short-term loans to commercial banks
B banks charge for loans to the most creditworthy customers
C is charged for government bonds sold in the open market operations of the Federal Reserve
D banks charge for overnight use of excess reserves held at the Federal Reserve banks
Question #7
A decreases the discount rate
B increases the discount rate
C changes required reserves to excess reserves
D increases the amount of excess reserves banks must keep
Question #8
A the discount rate
B the reserve ratio
C interest on reserves
D open-market operations
Question #9
A The total demand for money is inversely related to the interest rate.
B A lower interest rate raises the opportunity cost of holding money.
C The supply of money is directly related to the interest rate.
D Bond prices and the interest rate are directly related.
Question #10
A Federal Reserve
B U.S. Treasury
C Internal Revenue Service
D Congress of the United States
Question #11
A provide the Fed with a means of controlling the lending ability of the commercial bank
B add to the liquidity of the commercial bank and protect it against a “run” on the bank
C provide the means by which checks drawn on the commercial bank and deposited in other commercial banks can be collected
D protect the deposits in the commercial bank against losses
Question #12
A issuing paper money in excess of the amount of gold stored with them
B using deposited gold to produce products for sale to others
C issuing receipts for the gold stored with them
D accepting deposits of gold for safe storage
Question #13
A set up the money market investor funding facility (MMIFF)
B set up the Troubled Asset Relief Program (TARP)
C set up the commercial paper funding facility (CPFF)
D set up the primary dealer credit facility (PDCF)
Question #14
A overstating the moral hazard problem
B understating the benefits of devaluing the U.S. dollar
C underestimating the risk of losses on mortgage-backed securities
D overestimating the expected profits made by oil companies
Question #15
A acting as the fiscal agent for the federal government and issuing currency
B handling the Fed’s collection of checks and adjusting legal reserves among banks
C setting the Fed’s monetary policy and directing the buying and selling of government securities
D supervising the operation of banks to make sure they follow regulations and monitoring banks so they do not engage in fraud
Question #16
A commercial banks and thrifts as those institutions do for the public
B federal government as does the U.S. Treasury
C the public as do commercial banks and thrifts
D commercial banks and thrifts as does the Federal Deposit Insurance Corporation
Question #17
A publicly owned and controlled
B privately owned and controlled
C publicly owned but privately controlled
D privately owned but publicly controlled
Question #18
A controls the money supply
B uses price and wage controls
C buys corporate stock
D employs fiscal policy
Question #19
A increase the purchasing power of money
B decrease the conversion of money to gold
C increase the use of money as a measure of value
D decrease the use of money as a medium of exchange
Question #20
A 16.67%
B 14.14%
C 25%
D 20%
Question #21
A assets of the Federal Reserve Banks
B legal tender
C debts, or promises to pay
D token money
Question #22
A the belief of holders of money that it can be exchanged for desirable goods and services
B the willingness of banks and the government to surrender something of value in exchange for money
C the gold bullion that is stored in Fort Knox, Kentucky
D the confidence of the public in the ability of government to pay off the national debt
Question #23
A No, because the card transactions are not insured by either the Federal Reserve banks or the U.S. Treasury.
B Yes, because their value is included in the calculation of M 1.
C Yes, because their value is included in the calculation of M 2.
D No, because they provide a short-term loan to cardholders from a financial institution that issued the card.
Question #24
A fiat money
B legal tender
C a medium of exchange
D token money